Flexible working policy

Annualised hours

Annualised hours are more suited to a service area where seasonal variations have an impact on workload.  Employees work a set number of hours over the year rather than per week.

To convert weekly contracted hours to annualised hours multiply by 52.2. This is the number of hours the employee will be paid for the year.

We will calculate the amount of annual leave and bank holiday entitlement. We deduct the amount from the annualised hours to get the number of working hours over the year. 

Contracted hours should not be exceeded or underworked over the 12-month period. We pay the salary in 12 equal payments, irrespective of the number of hours worked that month. 

Where employment is terminated part way through a year, by either side, the manager will calculate any over or underworked hours. The number of weeks worked that year is multiplied by 37 hours (for full time employees), and we deduct the number of hours worked.  

We will pay employees any hours owed at the standard hourly rate. Hours owing by the employee will be deducted based on the standard hourly rate. 

Annualised hours conversion example 

For a full-time employee on Grade 4 with less than five years' service: 

A - Standard weekly hours: 37 
Total annual hours: 37 x 52.2 = 1,931.4 

B - Annual leave entitlement: 24 days 
Bank holidays: 8 days 
Total leave entitlement: 32 days 
Total leave in hours: 32 x 7.4 = 236.8 hours 

Annual working hours: A - B = 1,694.6 hours 

This employee will be paid for 1,931.4 hours per year but their working hours for the year will be 1,694.6 hours.  The difference between the two is the annual leave and bank holiday entitlement.
 
How the 1694.6 hours are worked over the year is dependent on the needs of the service.  The monthly salary is the annual salary divided by 12, irrespective of the actual hours worked in a month. 
 
Managers must ensure that employees take the time off which they are entitled to.  In this case it is 236.8 hours.  Employees should discuss with their manager when they would like to take this time.    
 
For a full-time employee on Grade 4 with more than five years' service: 
 
A - Standard weekly hours = 37 
Total annual hours: 37 x 52.2 = 1,931.4 
 
B - Annual leave entitlement: 29 days 
Bank holidays: 8 days 
Total leave entitlement: 37 days 
Total leave in hours: 37 x 7.4 = 273.8 hours 

Annual working hours: A - B = 1,657.6 hours 
 
Employees on an annualised hours contract will record hours worked. Managers should review the hours worked on a regular basis.  They should ensure that employees will not work more or less than the required working hours in the year.